The field of the present disclosure relates generally to the generation and delivery of electricity and more specifically, to a method and system for managing peak electricity demand.
As energy demand around the world has increased, environmental concerns and energy price volatility has increased interest in energy conservation and in alternative energy sources. Programmable thermostats have permitted consumers to program their heating and cooling systems to reduce consumption during certain time periods, for example, when they are not home or are asleep. Solar panels, fuel cells, windmills, back-up generators, and other energy sources have become increasingly available for use in residential homes and businesses. However, the use of such alternative energy sources and technologies may have been limited due to, for example, difficulty in recovering costs, unpredictability of alternative energy supplies (e.g., sun, wind, etc.), and/or a difficulty in integrating such sources and technologies into conventional electrical distribution systems.
Some electric utilities charge varying rates based on demand. For example, during periods of peak demand, a higher rate for electricity may be charged. Conversely, during low-demand periods, a lower rate may be charged. The inability of some types of energy users to curtail energy use and the lack of real-time information regarding the immediate cost of energy usage may limit the success of a variable rate program.